The main obstacle encountered by most social impact enterprises is a credit crunch, argue the people behind LivinGift, who have endeavored to solve this problem by offering zero-interest loans to social impact enterprises through crowdfunding.
The Israeli-based platform is now open for applications for all forms of organizations: non-profit, NGOs, for-profit companies, and cooperatives. Registration is open to social impact enterprises from all sectors, including health, education, animal protection, social impact technologies, environment, and support for disadvantaged populations.
The platform will be launched this April, in both English and Hebrew.
LivinGift’s Public Advisory Council headed by Prof. Meir Heth, previously Commissioner for Banks, Chairman of the Tel-Aviv Stock Exchange, Chairman of Bank Leumi and Chairman of Teva. The rating for the proposed ventures will be performed by the international rating agency D&B.
Social impact enterprises seeking to get a loan from LivinGift will have to show a double impact strategy: social or environmental impact, alongside a sustainable and profitable economic model and a fixed income.
The platform team together with a public council will evaluate the social impact and credit rating of every social impact enterprise wishing to join LivinGift. Those rated in the top five will get marketing assistance and public relations.
Shiry Eden, LivinGift founder, said in a statement: “We believe that significant social problems can only be solved over time by organizations that have a sustainable economic model. It is not a new idea for the Jewish people: the traditional Jewish charity funds – GAMACH (Abb. g’milut chassadim, or charity works) – operates on the same main idea of zero-interest loans to those in need. The highest level of charity according to Maimonides is giving to those in need a job or a loan, that allows them to provide for their families with dignity. In LivinGift, we use technology to accomplish those ideas.”